Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. to record the necessary adjusting entries on decem

To record the necessary adjusting entries on December 31,2024:1.**Prepaid Insurance Adjustment:** Debit: Insurance Expense...

70.2K

Verified Solution

Question

Accounting

To record the necessary adjusting entries on December 31,2024:1.**Prepaid Insurance Adjustment:** Debit: Insurance Expense $6,000([$18,000/3 years]*1 year) Credit: Prepaid Insurance $6,0002.**Salary Expense Adjustment:** Debit: Salary Expense $25,000 Credit: Salary Payable $25,0003.**Revenue Recognition Adjustment:** Debit: Deferred Revenue $2,000([$6,000/6 bikes]*2 bikes) Credit: Custom Design Revenue $2,0004.**Supplies Adjustment:** Debit: Supplies Expense $16,000($20,000- $4,000) Credit: Supplies $16,0005.**Prepaid Advertising Adjustment:** Debit: Advertising Expense $3,000($12,000/4 months *1 month) Credit: Prepaid Advertising $3,0006.**Interest Expense Adjustment:** Debit: Interest Expense $3,600($36,000*10%) Credit: Interest Payable $3,600These entries will ensure accurate financial reporting for Buzzard Bicycle at the end of the fiscal year on December 31,2024.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Solve this word problem using step by step procedure: The math department at a local university...

Basic Math
Q

The best definintion for a tropic hormone is one that:a) is activated when the environment...

Biology
Q

The reduction potential of Ubiquininoe Coenzyme Q is transport system Higher higher Higher lower O...

Biology
Q

Control groups are used in scientific experiments because they are easily identified by the experimenter...

Biology
Q

Let f(x)=x-4x+7x-6/x-2a. Graph the function on the window xmin = -2, xmax = 4, ymin...

Basic Math
Q

nd an equation in point slope y y 3 6 and 2 1 What is...

Calculus
Q

3 2 In a right triangle the relaion hypotenuse opposite adjacent is 40 points 1...

Calculus
Q

A scientist needs 5 6 liters of a 17 alcohol solution She has available a...

Algebra
Q

Porter Company is analyzing two potential investments. The payback period in years (rounded...

Accounting
Q

profit for them Problem 5-2A je it for the month ended Juille su, LUIT. 5-2A...

Accounting
Q

By selling goods to SPEs that it controlled but did not consolidate, did Enron overstate...

Accounting
Q

Returns on shares of Lattice are predicted as follows: Lattice earns 0.10 return in recession...

Finance